7 forms of financing for innovation

If you are innovative or have an innovative plan, you can look for money to pay for this. So finance. What are good forms of financing for innovation? 7 relevant options at a glance.

Do you dare it yourself?

First of all, as an entrepreneur you have to invest in your innovative idea yourself. An investor always checks whether the entrepreneur has contributed enough of his own resources. If the entrepreneur really believes in it, he will.

  1. Family and friends (FFF)

Many entrepreneurs attract funding through private investors. This can be family members and friends who provide you with a loan. This form of financing is also referred to as family, friends and fans . Especially for starters who have an innovative idea, this can be a good source of financing. You can determine the conditions of the loan in mutual consultation. It is important that you properly put the conditions on paper, so that the loan is demonstrable for the tax authorities.

  1. Informal investors

In addition to family and friends, other investors can also use resources from their private assets in your company and thus make innovation possible. These investors are also called informal investors . These are often successful entrepreneurs or other wealthy people who want to personally invest in your company. They not only bring money, but often also the necessary knowledge and a handy network. In exchange for the financing, informal investors receive profit shares or control in your company. Informal investors can be found via online marketplaces, such as Investeringsplein.nl, Investormatch.nl and many others. You can also call on a network of investors through certain banks.

  1. Investment and private equity firms

You also have investment and private equity firms. These are often private institutions in which investors are united. Together they can finance and bear the risk of your company, often referred to as private equity . Because private equity parties share in the risk of the company, they often also want to share in the future profit.


  1. Bank loan

You can also turn to the bank for a loan or credit . An existing company that has already proven to be profitable is easier for a bank to finance than an innovative start-up who has yet to prove itself. For existing profitable companies, innovation can be properly financed from the bank. Some banks even have specific loans and credit types for innovation.

  1. Security

You can also get an Innovative surety credit through banks (and several other financiers). This is part of the BMKB scheme (SME guarantee). The Dutch government guarantees a large part (normally 50 percent, temporarily 75 percent in connection with corona) for the credit. As a result, the bank is also more willing to finance and sometimes on better terms.

If you are innovative and have an R&D statement (Research & Development) from the government, you can apply for a credit of up to € 1.5 million within the BMKB, with a maximum term of twelve years.


Also crowdfundingis extremely suitable for financing innovation. With crowdfunding you appeal to ‘the public’. Via a crowdfunding platform (website) you can start a campaign and present your innovative idea or product and bring it to the attention of a large audience. Individuals can easily invest a certain amount via the platform and your plan can be funded that way. The big advantage of crowdfunding is its marketing function. Your company and your product are in the spotlight, especially if the campaign is successful. You do have to expose yourself to a large extent, even make your finances public. A crowdfunding campaign also costs you quite some time. In addition, a large part of the campaigns do not achieve the desired target amount. So make sure you set up a powerful crowdfunding campaign that has a good chance of success. First ask in your environment whether people would invest a small amount in your idea and ensure a powerful story in words and images.

  1. Microfinance

Another option, stimulated by the government and banks, is microfinance. With microfinance you can go to microfinance credits for small loans up to $250,000.

How do you determine which form of financing suits your company? Also check which subsidies are available. Read the free white paper ‘Money for innovation’ .

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